The Reserve Bank of India on Friday said it had imposed a penalty above Rs. 3.06 crore on Amazon Pay (India) Private Limited for non-compliance with certain terms regarding Prepaid Payment Instruments (PPI) and Know Your Customer (KYC) direction.
“It was observed that the entity failed to comply with instructions due to RBI ABOVE KYC request,” RBI said in a statement.
RBI has issued a notice for Paying on Amazon (India) advises giving reasons why penalties should not be imposed for non-compliance with the guidelines.
“After reviewing the entity’s response, the RBI has concluded that the allegation of non-compliance with the aforementioned RBI guidelines has been substantiated and warrants the imposition of a fine,” it said.
However, the central bank added the penalty based on the lack of regulatory compliance and does not intend to make any representations about the validity of any transaction or agreement entered into by Amazon Pay ( India) with its clients.
According to a statement from the central bank, this action is based on a lack of regulatory compliance and is not intended as a statement as to the validity of any transaction or agreement entered into by the entity with its customers.
Amazon Pay is the digital payments arm of e-commerce giant Amazon.
The RBI statement said the penalty was imposed in exercising the powers conferred on the RBI under Section 30 of the Payments and Settlement Systems Act 2007.
An Amazon spokesperson said the company remains committed to operating within regulatory guidelines and maintaining compliance.
“We continue to work closely with the authorities to share our commitment with them,” the spokesperson said.
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